Frequently Asked Questions, Answered
If you feel like you’ve come to terms with the terminology of our Consensus Algorithm & the staking mechanics, you might feel ready to dive in immediately. However, if you’re not quite sure yet, don’t fret. We’ve collected a list of pre-emptive questions you might have regarding the act, the reward, and the requirements of Block Generator staking below.
What is Block Generator staking?
Staking means you are fulfilling a vital role within Dusk Network by acting as a ‘Block Generator’. Staking as a ‘Block Generator’ prevents collusion within the network by competing to produce a candidate block through a novel mechanism called Proof-of-Blind Bid . This PoBB powers Dusk Network and is an energy conscious consensus algorithm that generates unprecedented network security.
While this may sound complicated, acting as a Generator is actually a very simple process that has participants sharing in a sizable DUSK token reward pool. All it takes is ‘locking-in’ your DUSK tokens.
If you’d like to know more about the purpose of staking within Dusk Network, please read our article: An Introduction to our unique Consensus Algorithm.
What are the rewards for Block Generator staking?
All Block Generator stakers tap into the same fixed reward pool; a total of 250.000 DUSK is reserved for Generator stakers every month . This reward pool is split amongst Block Generators based on the percentage of DUSK they’re staking as part of the combined number of DUSK staked by all Generators.
When does Block Generator staking start?
The launch of Dusk Network staking is currently scheduled for the . Because staking as a Generator utilizes a fixed shared reward system, participants who join early may benefit from the first mover advantage and potentially accumulate a larger share of the reward.
Who can become a Block Generator?
We value accessibility. This is why the process of staking DUSK tokens will be open to the public. All that is required is the prerequisite DUSK token amount, and to be eligible in accordance with our country exclusion list. As a general rule of thumb, if you are able to buy and trade DUSK then you should be able to stake.
During the ERC-20 stage, minimal technical knowledge is required to stake. Our step-by-step tutorials will detail the actions needed to participate, while ensuring wide accessibility to non-technically savvy users.
What wallets are supported?
This stage of Dusk Network staking is compatible with any ERC-20 wallet, as long as you own the private key or seed phrase, so they can be imported into MetaMask. Cold storage devices such as Ledger or Trezor can also be used with MetaMask.
Why use MetaMask?
MetaMask automates a host of interactions and reduces the chances of mistakes in the process. The MetaMask app can be found here: https://metamask.io/
How many DUSK do I need to stake as a Block Generator?
Generators must stake ( ‘bid’ ) exactly 100.000 DUSK tokens to be eligible for rewards, i.e. sharing in the reward pool. Since we require a fewer number of Block Generators within the system than the total number of Provisioners needed, becoming a Block Generator comes with steeper requirements.
What if I don’t have enough DUSK to be a Block Generator?
Don’t worry, other options for staking within Dusk Network might become accessible in the near future. Aside from Block Generator staking, there will be a second staking role that needs to be filled, called Provisioner staking. The staking requirements for Provisioners are far lower, with a minimum DUSK threshold that is roughly 10 times smaller than that of Block Generators.
Provisioner staking will be offered to the public once Block Generator staking has stabilized.
What is the minimum duration of Block Generator staking?
Staking as a Generator requires a minimum DUSK token lock-up of 30 days. As implied, staked DUSK tokens cannot be moved or returned during this period. Please note that, in addition to the lock-up, there is a 7-day cool-down period if you wish to stop staking, and withdraw your stake (or reward). This results in a total minimum lock-up duration of 37 days.
How many Block Generator stakers can there be?
There is no limit on the number of Block Generators that can participate.
Can I stake more than the required 100K DUSK for Block Generator staking?
During the ERC-20 phase, Block Generators are required to stake exactly 100K DUSK tokens. No more, no less. However, you can run additional Block Generator nodes if you have the requisite 100K DUSK available for each.
What happens when I want to stop staking?
Similar to how you started staking, you can indicate your desire to stop staking via MetaMask. When you indicate your desire to stop staking, you will be returned your total staked & rewarded DUSK after a 7-day cool-down period .
Please note that after the 7-day cool-down period has commenced, you will need to interact with the smart contract again to retrieve your stake. During this cool-down period, no staking reward will be accumulated.
When are staking rewards calculated?
Rewards are calculated on a full day-to-day basis , i.e. every 24 hours. This means no rewards are calculated for staking only a partial day. However, it also means that a temporary staking ‘time-out’ won’t automatically result in losing a month’s worth of rewards.
Reward calculation occurs exactly every 24 hour after contract deployment. The time and date of contract deployment was: .
Can I withdraw only my rewards?
Yes, you can withdraw your rewards separately from your initial DUSK staking amount. Similar to how you initiated your staking, you can simply head over to MetaMask where you will find an option for reward withdrawal.
Do unclaimed rewards accumulate interest?
Reward calculation is based on the principal amount of 100.000 DUSK tokens. The accruement of rewards does not stack on top of this amount, meaning that unclaimed rewards do not accumulate compound returns. In essence, there is no benefit to not claiming your staking rewards.
Can I change my reward address after I stake?
Once a reward address is submitted, it cannot be changed. However, you can restart the staking process from a new ETH address by withdrawing all your staked DUSK and moving them to this new address.
Please note that withdrawing your staked DUSK activates a 7-day cool-down period during which no staking rewards will be accumulated.
Are the requirements for ERC-20 staking similar to those for mainnet staking?
We have not yet confirmed the exact amount of DUSK needed to become a Block Generator or Provisioner once the mainnet goes public. Exact details on staking requirements will be stated in the coming Dusk Network Economic Paper. Though requirements are subject to change based on market conditions, external to our security model, we expect chosen ERC-20 staking requirements to be in line with future mainnet staking requirements.
I’ve decided I want to be a Block Generator in the Dusk Network! Where can I sign up?
Simply visit the registration page and follow the pre-registration instructions!
Who's paying for the ERC-20 staking rewards?
The rewards come from Dusk Network's marketing & ecosystem budget allocations. The maximum supply of DUSK tokens, of course, remains unaffected.
Do you have a question not answered above?
Don’t hesitate to reach out to us through [email protected] .